Trends in U.S. Foodservice Contracting

Date: July 23, 2011
Pages: 162
US$ 3,995.00
Publisher: Packaged Facts
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

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Trends in U.S. Foodservice Contracting
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Unlike restaurants and food retailers, foodservice contractors may not be household names, but they participate in one of the most successful areas of the food and foodservice industry. As detailed in Packaged Facts’ Trends in U.S. Foodservice Contracting, we believe its future is bright, forecasting enviable growth in education, healthcare, military, and sports and recreation markets, with more significant challenges ahead for the business and industry segment.

Trends in U.S. Foodservice Contracting provides insight on opportunities for contractors providing food services to commercial, non-commercial and government locations. We provide in-depth segment analysis for six key market verticals, including market size and forecasting, innovation leadership case studies, and opportunity analysis.

The report also includes thorough competitive analyses of the four major foodservice contracting players: Aramark Corp, Sodexo Inc., Compass Group PLC, and Delaware North Companies. Each profile analyzes foodservice strategies and innovations, as well as sales trends, by market segment. The report also includes profiles of growing mid-size firms such as Guckenheimer Enterprises, Inc. Guest Services, Inc. Centerplate, and Thompson Hospitality.

Scope and Methodology



Consumer survey methodology

Market size and forecast


Content Summary

Share of stomach: foodservice contractor sales analysis

K-12 foodservice contracting trends

College & university foodservice contracting trends

Healthcare foodservice contracting

Corporate foodservice contracting trends

Military foodservice contracting trends



Packaged Facts foodservice contractor market size & forecast

Graph 2-1: Foodservice Contracting Sales, 2007-2012

Bundling services

A significant strategic shift

Revenue among “Big Three” foodservice contractors surges

Table 2-1: “Big Three” Foodservice Contractors, U.S. Contracting Revenue, 2009-11

Segment analysis

Corporate and education markets dominate contract share

Graph 2-2: Foodservice Contract Management Contract Share, by Market Segment, 2010

Sales segmentation

Segment sales trends

Graph 2-3: Foodservice Contracting Sales, by Segment, 2007-2012

B&I more sensitive to macro-trends than education and healthcare

Graph 2-4: Foodservice Contracting Sales, by Segment, Percent Change, 2007-2012

Education foodservice contracting

K-12 foodservice

College and university foodservice

Summary growth analysis

Graph 2-5: Education Foodservice Contracting Sales, 2007-2012

Healthcare foodservice contracting

Self-managed hospital foodservice still holds sway

Summary growth analysis

Graph 2-6: Healthcare Foodservice Contracting Sales, 2007-2012

Business & Industry foodservice contracting

Summary growth analysis

Graph 2-7: B&I Foodservice Contracting Sales, 2007-2012

Military foodservice contracting

Graph 2-8: Military Foodservice Contracting Sales, 2007-2012

U.S. Army generates highest percentage of revenue

Sodexo receives highest percentage of revenue

Table 2-2: Top Five Military Foodservice Contracting Agencies, 2010

Recreation and amusement foodservice contracting

Graph 2-9: Sports & Entertainment Foodservice Contracting Sales, 2007-2012


Momentum analysis: positive

Government budget constraints a mixed blessing

Cacophony of K-12 foodservice attention to shield it from budget axe

Bottom line: enter contracting

Positive macrotrend: Enrollment

Table 3-1: PK-8, 9-12, and PK-12 Enrollment Trends, 2007-17

Macro-trend application: health and wellness

National School Lunch Program & Breakfast Program: scope of coverage

Nutritional requirements


Program costs

Adapting to government-driven health changes

Task Force on Childhood Obesity

Targeting food content

Strengthening legislation

Adapting to the Healthy, Hunger-Free Kids Act

Food waste and funding issues may stifle possibilities

Incenting breakfast use

Program availability reduces tendency to skip breakfast

Convenient breakfast options increase participation

K-12 foodservice innovation case studies

Contracting success: District of Columbia Public Schools

The perfect candidate: A debt-ridden school district in need

Revamping menus

Redesign by Chartwells

School innovation: San Francisco Unified School District

Table 3-2: San Francisco Unified School District, by the Numbers

Student Nutrition Services

Electronic POS system in place

Slow food pilot program

Nutrition initiatives: local, whole grains, and “featured” fruits and vegetables

Table 3-3: San Francisco Unified School District,

Food Service Menu Highlights

Portability innovation

Table 3-4: San Francisco Unified School District,

Grab n Go Breakfast Program, by the Numbers

Super Choice menu rollout to bridge income-related issues

Salad bar implementation

Other initiatives


Postsecondary foodservice contractor momentum: positive

Addressing student needs and expectations

Healthful offerings and technology provide draws

Table 4-1: Food & Foodservice Attitudes & Behaviors: All Users, Students & College Foodservice Users, 2010

Build flexibility, variety and convenience into meal plan

Grab and go flexibility

Late night flexibility

Provide healthful options

Address food allergies

Leverage social media

Inform and communicate

Obtain feedback

Reinvent the dining hall

Guest traffic drivers

Table 4-2: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010, by Age

On-campus dining still lags the offsite competition

Ramp up entertainment value

Foodservice contractors partners in remodeling

Innovate with own-brand restaurant concepts

Practice sustainability

Trayless and to-go cups

University of Colorado at Boulder

University of Massachusetts

University of Texas at Austin


Hospital Foodservice contractor momentum: positive

Contractors to benefit from budget pressures

Positive macrotrend: government funding

Positive macrotrend: aging population

Table 5-1: Population Projection, Age 65+ and Age 85+, 2010-2025

Positive macrotrend: inpatient and outpatient guest footprints

Trend application: wellness and nutrition

Healthy hospital foodservice: pro and con

Pros to healthier hospital foodservice

Cons to healthier hospital foodservice

Wellness and nutrition initiatives on the upswing

Menu strategy: disease-specific menus

Menu strategy: probiotic menus

Restaurant strategy: branding health

The dilemma

30,000 McDonald’s in the U.S. but only 32 in hospitals

The bottom line: healthy brands have room to grow

Branding health innovation snapshot: Mayo Clinic

Customer service, individualized care & room service

Customer service

Room service and individualized patient care

Personal dining care, on demand

Johns Hopkins Hospital

Ronald Reagan UCLA Medical Center

Hybridizing room service and retail

The need for speed and convenience

Examples: Mayo Clinic, Children's Hospital of Philadelphia, UCLA Medical Center

Grab and go!

Minimizing disease transmission at expense of self-service

Sustainability and green initiatives

Examples: Mayo Clinic Arizona, ARAMARK and AVI Food Systems

Variety and culinary exploration


Examples Central DuPage Hospital, Mayo Clinic, UCLA Medical Center

Culinary exploration

Examples: Mayo Clinic and Cleveland Clinic

Chefs on board

Example: Tyson Food Service

Special discounts and incentives to dine in the hospital

Example: Grant Medical Center

Visual stimulation

Driven by restaurant competition

Examples: Barnes-Jewish Hospital, Northwestern Memorial

Food as visual stimulation

Foodservice innovation profile: Cleveland Clinic

Patient profile

Table 5-1: Cleveland Clinic, Demographic Data, Treated Diabetics

Foodservice programs and services

Multitude of dining options

Ousting chains

Pizza Hut leaves; McDonald's stays

Management split between Sodexo and AVI Food Systems

Room service an extra: get a Founders Suite

Foodservice growth trends

Emerging trends

2009-10 foodservice initiatives

Future initiatives


Foodservice contractor momentum: negative

Challenge: reliance on larger companies

Challenge: declining usage

Meal participation declines



Challenge: brown bagging

Brown bagging trend maintains momentum through 2010

Creating downward pressure on corporate foodservice

Solution: cater to smaller sites

Eurest's Simply Puur café concept

Whole+Sum menu

Solution: target by occupation

Consumer research suggests that food attitudes vary widely by occupation


Meal times

Fast food

Table 6-1: Selected Food Attitudes, Full-Time On-Site Fortune 500 Employees, by Occupation, 2010

Menu selection by occupation application: NASA Jet Propulsion Laboratory

Varying menus by occupation and location

Solution: target by generation

The Millennial issue

Solution: tap into wellness

A trend on the rise

Table 6-2: Wellness Program Benefit Access, 2000-2010

Healthy food promotion policies nearing majority status

Application: Aramark

Sustainable and local

Application: Thomas Cuisine Management

Application: Whitsons Culinary Group

Application: Cerner Corporation

Application: Hallmark Cards

Application: NBC Universal

Application: Guest Services, Inc.

Going trayless to reduce portion size

Solution: adapt to restaurant competition

Familiarity and ease of use drive restaurant decision

Convenience is King

Among restaurants, convenience comes in many forms

For employees, what does it mean?

Restaurant density analysis provides insight

Example: Aon Corporation

Developing the foodservice retail space

Application: Microsoft

The Commons: the future of corporate foodservice?

Application: Cerner Corporation


Onsite brands

Example: Sodexo

Example: Thomas Cuisine

Example: Whitsons Culinary Group

Microsoft builds “local brands”

Leveraging celebrity

Solution: leverage cost advantage

Average guest check trends

Employment site examples: Whitsons Culinary Group



Corporate foodservice can leverage pricing advantage

Datassential MenuTrends Direct menu pricing analysis

Table 6-3: Average Entrée Price, Breakfast and Lunch Dayparts, QSR, Family Midscale, and Casual Restaurant Segments, 2008-2010

And increase supply volume

Solution: reinvent menus

Value meal approaches: Compass & Thomas Cuisine

Success story: Hallmark

Success story: Microsoft

The Commons hits some important notes

Menu variety initiatives

Whitsons Culinary Group: One contractor; a variety of menu concepts

Sodexo sees promise with international cuisines

A variety application: Microsoft

A variety application: Jet Propulsion Laboratory

Starbucks headquarters

Solution: adapt to break time and meal time

Hours of operation

Timing meals: an hour-by-hour analysis

Worker break spontaneity

Employee camaraderie & morale

Teaming up to slim down

Flik melds food & atmosphere to enhance social responsibility & camaraderie

Foodservice as oasis where people want to come to relax

Success story: 30 Rock

Solution: reduce costs

Reducing labor costs

Service and portability as means to cut costs

Example: Whitsons Culinary Group

Example: Thomas Cuisine

Example: Sodexo


Military foodservice contractor momentum: positive

Positive macrotrend: employment trends

Positive macrotrend: domestic military spending

Graph 7-1: Department of Defense Budget, 2001-2012

Contractor analysis: U.S. Marine Corp.

Sodexo’s military foodservice leadership


RGFSC I consequences


Sodexo’s contract halved into two

Superior Services picks up other half

Table 7-1: U.S. Marine Corps RGFSC II Foodservice Contract, Selected Metrics

Contractor Analysis: Air Force Food Transformation Initiative

Putting it in perspective: 91 million meals per year

Bringing food service into the 21st century

ARAMARK gets the nod

Expected improvements

Alaska base sees significant change

Air Force already weighing benefits

Bottom line

Trend application: feed the family, not just the soldier

Family members substantially outnumber service members

Table 7-2: Ratio of Family Members to Active Duty Service Members

Army breakdown: lots of kids!

Trend application: give them a reason to stay on the base

Remember! Most Army members live off-post

Table 7-3: Places of Residence of Active Duty Soldiers

Remember: military members prefer off-site food options to on-site options

On-post vs. off-post food & beverage services comparison

Table 7-4: Comparison of Quality of On-Post and Off-Post Food and Beverage Services,

On Post versus Off Post

Dining preferences, by daypart and by service option

Table 7-5: Frequency of Meals Eaten Out, Taken Out or Ordered In, by Daypart & Restaurant Service Type

Remember: borrow liberally from off-site foodservice options and atmosphere

Marine Corps takes a few pages from college campuses

Camp Lejeune borrows from Colorado State University

Remember: Leverage restaurant branding opportunities

Revenue and brand analysis: AAFES Exchange

Table 7-6: AAFES Retail and Concession Sales, 2007-2009

Growing restaurant operations

1,600 restaurants and counting

Trend application: adapt to health & nutrition initiatives

Military not immune to obesity epidemic

A significant military medical concern

Menu changes galore

Change in the wind: Army Meal Kits

Change in the wind: Army Soldier Fuelling Initiative

Change in the wind: Health education

Marine Corps FUEL For Life

JCCoE Goes for Green

Trend application: respect the environment

Marines lead the charge

Marine Corps base goes green

Aramark Corp

Foodservice operations


Food service sales analysis: 2011

Food service sales analysis: 2010

Food service sales analysis: 2009

North America Business and Industry Sector

Sales analysis: 2009-11

Vending & Office Refreshments Operations

On-Site Foodservice

Event Catering

Strategy: Workplace Productivity, Value-Added Services, Contract Design

Workplace Productivity

Value-Added Services

Contract Design

North America Education Sector

Sales analysis: 2009-11

K-12 Education Overview

School Meal Programs

Expanded Meal Opportunities

Nutrition Education

K-12 Strategy: Health & Nutrition, Boosting Student Participation, Age Differentiation

Health & Nutrition

Boosting Student Participation

Age-Segmented Dining Brands

Higher Education Overview

Residential Foodservice

Food Courts & Snack Bars

Convenience Stores & Vending

Higher Education Strategy: Green Thread Program, Health, Technology

Green Thread Program



North America Health Care Sector

Sales analysis: 2009-11

Patient foodservice

Retail foodservice

Facility services

Strategy: partnering in patient care, custom menus, branding

Partnering in patient care

Custom menus


North American Sports and Entertainment sector

Sales analysis: 2009-11

Summary sales analysis

Table 8-1: Aramark by the Numbers, 2008-2011

Sodexo Inc.

North American Corporate Foodservice


Sales analysis: 2009-11

Cafes, Retail Brands


Office Refreshment

Corporate Foodservice Strategy: Sustainability, Celebrity Chef Partnerships, Employee Health

Employee Health

Celebrity Chef Partnerships


Work/Life Balance

North American Education Foodservice

Sales analysis: 2009-11

K-12 Foodservice

School Lunch Programs

Age-specific dining programs

Childhood hunger programs

Nutrition Education

Higher Education Foodservice

Residential Foodservice

Retail Foodservice

Convenience Stores & Vending

Education Foodservice Strategy: Student Board of Directors, CustoMenu, Autonomy

Student Board of Directors



Sodexo's Retail Brand Group


Jazzman's Café and Bakery

Salsa Rico

Original Burger Company

Mein Bowl

Bruegger’s Bakery Café licensing agreement

Market Trends and Sodexo Response

Obesity and Health

Globalization and Diversity


North American Health Care

Sales analysis: 2009-11

North American Health Care Foodservice

Patient dining services

Visitor & staff dining services

Retail foodservice

Health care foodservice strategy: high-value custom offerings, nutrition services

High-value custom offerings

Nutrition Services

Market trends & Sodexo response

Health care expenditures

Patient consumerism

Shortage of health care personnel

Summary sales analysis

Table 9-1: Sodexo by the Numbers: 2008-11

Compass Group PLC

Compass Group North America (CGNA)



Sales summary

Foodservice strategy

Room for growth

It Takes You - Eat Local

Leveraging role of single-source provider

Selective acquisitions

North America Business & Industry Sector

Corporate Dining

Premium/Executive Dining

Catering and Event Services



Focused Promotions and Value Offerings

Kimco & Cross-Selling

North America Education Sector

K-12 Dining

Private Schools

Higher Education

Education Strategy

Health & Wellness

Campus Community

Dining Programs

North America Health Care Sector

Patient Foodservice

Senior Living Foodservice

Retail Foodservice

Support Services


Personalized Care

Retail Branding

Retail Strategy

Sports & Recreation

Summary sales analysis

2010 sales on the upswing

Trend continues into 2011

U.S. operating segment performance

Table 10-1: Compass Group by the Numbers: 2009-11


Delaware North Companies


Recent performance



Recent activity

Gaming Hospitality Group

Recent activity

Travel Hospitality Services

Recent activity

Parks & Resorts

Recent activity

Delaware North Companies Boston


Recent activity

Guckenheimer Enterprises, Inc.

Table 11-1: Guckenheimer Enterprises, Inc., Selected Metrics

Guest Services, Inc.

Table 11-2: Guest Services, Inc., Selected Metrics

Thompson Hospitality

Table 11-3: Thompson Hospitality, Selected Metrics

AVI Food Systems, Inc.

Table 11-4: AVI Food Systems, Inc., Selected Metrics

CulinArt, Inc.

Table 11-5: CulinArt, Inc., Selected Metrics

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